TSL Straddle Strategy
TSL (GraniteShares 1.25x Long Tsla Daily ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
TSL is a short-term tactical tool that aims to deliver 1.25x the price return, less fees and expenses, for a single day of Tesla stock. Purchasers holding shares for longer than a day need to monitor and frequently rebalance their position to attempt to achieve the 1.25x multiple. At the adviser's discretion, the fund may utilize standardized exchange-traded and FLEX call and put options with 1-week to 1-month terms. It may either buy deep in-the-money calls or use a synthetic forward options strategy. Aside from the leverage, the shares take on added volatility due to the lack of diversification. Purchasers should conduct their own stock research prior to initiating a position and trade with conviction.
TSL (GraniteShares 1.25x Long Tsla Daily ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $11.1M, a beta of 2.06 versus the broader market, a 52-week range of 10.73-21.31, average daily share volume of 867K, a public-listing history dating back to 2022, approximately 631 full-time employees. These structural characteristics shape how TSL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.06 indicates TSL has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. TSL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a straddle on TSL?
A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration.
TSL snapshot
As of August 14, 2026, spot at $12.71, ATM IV 48.90%, IV rank 9.61%, expected move 14.02%. The straddle on TSL below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this straddle structure on TSL specifically: TSL IV at 48.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a TSL straddle, with a market-implied 1-standard-deviation move of approximately 14.02% (roughly $1.78 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TSL expiries trade a higher absolute premium for lower per-day decay. Position sizing on TSL should anchor to the underlying notional of $12.71 per share and to the trader's directional view on TSL etf.
TSL straddle setup
The TSL straddle below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With TSL at $12.71 on that close, the first option leg uses a $13.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TSL chain at a 35-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 TSL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $13.00 | $0.55 |
| Buy 1 | Put | $13.00 | $1.03 |
TSL straddle risk and reward
- Net Premium / Debit
- -$157.50
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- -$154.08
- Breakeven(s)
- $11.43, $14.58
- Risk / Reward Ratio
- Unbounded
Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit.
TSL straddle payoff curve
Modeled P&L at expiration across a range of underlying prices for the straddle on TSL. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -99.9% | +$1,141.50 |
| $2.82 | -77.8% | +$860.59 |
| $5.63 | -55.7% | +$579.67 |
| $8.44 | -33.6% | +$298.76 |
| $11.25 | -11.5% | +$17.84 |
| $14.06 | +10.6% | -$51.93 |
| $16.86 | +32.7% | +$228.99 |
| $19.67 | +54.8% | +$509.90 |
| $22.48 | +76.9% | +$790.82 |
| $25.29 | +99.0% | +$1,071.73 |
When traders use straddle on TSL
Straddles on TSL are pure-volatility plays that profit from large moves in either direction; traders typically buy TSL straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
TSL thesis for this straddle
The market-implied 1-standard-deviation range for TSL extends from approximately $10.93 on the downside to $14.49 on the upside. A TSL long straddle is a pure-volatility play: it profits when the underlying moves far enough from the strike in either direction to overcome the combined call plus put debit, regardless of direction. Current TSL IV rank near 9.61% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on TSL at 48.90%. As a Financial Services name, TSL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TSL-specific events.
TSL straddle positions are structurally neutral / high-volatility (long premium); the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. TSL positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TSL alongside the broader basket even when TSL-specific fundamentals are unchanged. Always rebuild the position from current TSL chain quotes before placing a trade.
Frequently asked questions
- What is a straddle on TSL?
- A straddle on TSL is the straddle strategy applied to TSL (etf). The strategy is structurally neutral / high-volatility (long premium): A long straddle buys an ATM call and an ATM put at the same strike, profiting from a large move in either direction; max loss equals the combined debit when the underlying pins to the strike at expiration. With TSL etf at $12.71 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed TSL chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are TSL straddle max profit and max loss calculated?
- Upside max profit is unbounded; downside max profit is bounded at the strike minus the combined call plus put debit (reached at zero). Max loss equals the combined debit times 100 (reached when the underlying pins to the strike). Two breakevens at strike plus debit and strike minus debit. For the TSL straddle priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 48.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$154.08 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TSL straddle?
- The breakeven for the TSL straddle priced on this page is roughly $11.43 and $14.58 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The TSL market-implied 1-standard-deviation expected move in the same options snapshot is approximately 14.02%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a straddle on TSL?
- Straddles on TSL are pure-volatility plays that profit from large moves in either direction; traders typically buy TSL straddles ahead of earnings, FDA decisions, or other catalysts where the realized move is expected to exceed the implied move priced into the chain.
- How does current TSL implied volatility affect this straddle?
- TSL ATM IV is at 48.90% with IV rank near 9.61%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.